NEW YORK -- Crude-oil futures rose to finish above $82 a barrel on Wednesday, lifted by better-than-expected U.S. supplies data, a strong economic report from China and forecasts of higher global demand. 

Crude oil for April delivery finished up 60 cents, or 0.7%, at $82.09 a barrel at the New York Mercantile Exchange.
In early trade, oil first benefited from strong imports data from China as well as higher forecasts for oil demand from both the Organization of the Petroleum Exporting Countries and the U.S. Energy Information Administration. 

Crude then jumped to $83.12 a barrel, its highest level since it reached a 2010 high of $83.25 barrel on Jan. 8, after data from the EIA showed a smaller-than-expected increase in U.S. crude supplies and a big drop in gasoline supplies.

But the data also suggested U.S. demand remains weak. Refinery usage fell 1.2% to 80.7% of capacity, the lowest rate since Feb. 12. And crude supplies remain at a 5-year high right as winter, normally a heavy season for energy consumption, comes to an end.

"Market participants have been reticent to push prices to new highs and will continue to be so until a compelling rationale appears," said Mike Fitzpatrick, energy analyst at MFGlobal, in a note. "OPEC and stockpile reports will not be enough." 

Crude-oil supplies were up 1.4 million barrels in the week ended March 5, the EIA said. Analysts polled by Platts expected an increase of 2.1 million barrels.

The EIA also reported a drop of 2.9 million barrels in gasoline stocks. Analysts polled by Platts expected a decline of 338,000 barrels.
Below the surface, however, the EIA data didn't reveal an improving picture for U.S. demand, according to Tariq Zahir, managing member of Tyche Capital Advisors.

"While the fundamentals of the energy complex are bearish the energy markets have taken an outlook of improving demand and global recovery," Zahir said in emailed comments. "This was highlighted by recent numbers out of China from imports and the upward increases in outlook for demand by OPEC and the EIA."

While crude inventories are still rising, the drop in gasoline stocks was due to refiners doing maintenance to switch from heating oil to unleaded gas, Zahir said.

The analyst says that speculative money into the energy market has increased recently, as shown by the latest figures from the U.S. Commodity Futures Trading Commission.

The EIA also reported a drop of 2.2 million barrels in supplies of distillates, which include heating oil. Platts' average forecast of analysts was for a drop of 950,000 in distillate stocks.

Elsewhere in the energy complex, gasoline for April delivery finished up 3 cents at $2.29 a gallon, while heating oil for the same month rose 3.1 cents to $2.12 a gallon.

April natural gas rose 4.4 cents to $4.56 per million British thermal units.

Source:  MarketWatch